2009 Best Practices Study

Agencies with Revenues Between $1,250,000 and $2,500,000

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Revenue Growth by Source (continued)

Average +25% Profit +25% Growth

Value Added Services - L&H Renewals 1

1 Renewal Revenues as a % of prior year’s total revenues for this line of business. This figure is impacted by attrition (loss or retention of accounts) and by changes in premium and commission levels. The higher the %, the more favorable the results. 2 New Revenues as a % of prior year’s total revenues for this line of business. The higher the %, the more favorable the results. 3 Acquired Revenues as a % of prior year’s total revenues for this line of business. The % indicates the significance of acquired business. 4 Growth in Revenues from prior year excluding acquired revenues. 5 Growth in Revenues from prior year including acquired revenues.

81.6%

* * * * *

* * * * *

New Business 2

2.4% 0.0%

Acquired Revenues 3

Organic Growth 4

-16.0% -16.0%

Total Growth 5

Total Commissions & Fees Renewals 1

84.0% 89.3% 88.8% 17.7% 18.5% 20.7%

New Business 2

Acquired Revenues 3

1.8%

4.6%

0.0%

Organic Growth 4

4.3% 17.4% 19.2% 6.1% 22.0% 19.2%

Total Growth 5

P&C Contingent Income Growth L&H Bonus Income Growth Investment Income Growth

6.3% 32.5% 55.1%

7.0%

*

*

-18.8%

-1.2%

-2.5%

Total Revenue Growth

6.8% 23.0% 23.8%

Brokerage Commission Expense Growth Net Revenue Growth (Organic)

-22.1%

*

*

5.7% 18.9% 23.8% 7.3% 23.0% 23.8%

Net Revenue Growth (Total)

*Insufficient Data

25 2009 Best Practices Study | Agencies with Revenues Between $1,250,000 and $2,500,000 | Revenues/Expenses